In This Article:
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New Customer Acquisition: 1.11 lakh new customers in Q3 FY25, total customer base at 47.4 lakh.
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Average Daily Turnover (ADT): INR 3.03 trillion, a 20% quarter-on-quarter decline.
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Client Funding Book: Grew to 265 crore, an 8% quarter-on-quarter increase.
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Mutual Fund AUM: Reached 1,386 crore, a 73% year-on-year growth.
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Brokerage Revenue: Dropped 8% quarter-on-quarter to 43.9 crore.
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Allied Income: Decreased by 39% quarter-on-quarter to 16 crore.
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Total Revenue: 85.3 crore, reflecting a 15% year-on-year decline.
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Profit After Tax (PAT): Grew 8% year-on-year to 16.2 crore.
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PAT Margin: 19% for Q3 FY25.
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Expenses: Other expenses decreased by 14% due to reduced client acquisition costs and cost optimization efforts.
Release Date: January 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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5paisa Capital Ltd (NSE:5PAISA) acquired 1.11 lakh new customers in Q3 FY25, bringing the total customer base to 47.4 lakh.
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The company's mutual fund AUM reached INR 1,386 crore, marking a 73% year-on-year growth.
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Profit after tax grew by 8% year-on-year to INR 16.2 crore, with a profit after tax margin of 19%.
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The company has revamped its web platform and mobile app for enhanced performance and user experience.
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Efforts in platform optimization have led to lower latencies and increased throughput, enhancing user engagement and satisfaction.
Negative Points
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The average daily turnover declined by 20% quarter-on-quarter to INR 3.03 trillion due to regulatory changes.
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Brokerage revenue dropped by 8% quarter-on-quarter to INR 43.9 crore, impacted by new regulations.
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Allied income decreased by 39% quarter-on-quarter to INR 16 crore, affected by the 'true to label' regulation.
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Total revenues reflected a 15% year-on-year decline, standing at INR 85.3 crore.
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The payback period for client acquisition is expected to increase from six to eight months due to regulatory changes.
Q & A Highlights
Q: How do the recent regulatory changes affect the payback period for client acquisition, and is there a change in strategy for customer acquisition? A: Gaurav Seth, CEO, mentioned that the payback period for client acquisition is expected to extend from six to eight months due to the new regulations. While there is no drastic change in the client acquisition strategy, the company aims to be more thoughtful and focus on acquiring customers who can benefit from their products in the long term.
Q: Are there any changes in pricing policy due to the new regulations? A: Gourav Munjal, CFO, stated that there are currently no changes in pricing policy. The company is monitoring market volumes and competitor actions before making any decisions.